Hennion & Walsh's Mahn says rate cuts will push investors toward BDCs
The NAVigator · Active Investment Company Alliance
Audio is streamed directly from the publisher (traffic.libsyn.com) as published in their RSS feed. Play Podcasts does not host this file. Rights-holders can request removal through the copyright & takedown page.
Show Notes
Kevin Mahn, President and Chief Investment Officer at Hennion & Walsh Asset Management — which runs the Smart Trust Unit Investment Trusts — says that he expects the Federal Reserve to cut rates over the next two years, which will drive investors to turn for income alternatives "since they can't find the 5 percent in the short-term CDs any more." That will drive investors toward business development companies and leveraged municipal closed-end funds, the latter benefitting from a reduced cost of leverage in a declining rate environment, as rates drive down. Mahn talks about using unit investment trusts — and specifically covers his firms UITs that invest in BDCs and closed-end funds — in current conditions, and talks about how the UIT structure can be a benefit for investors now.